According to Santiment, the decline in overall whale activity across most crypto assets has become more and more noticeable. Recent on-chain data highlights a significant drop in the number of whale transactions, or large transactions, referring to those above $100,000 for major crypto assets Bitcoin and Ethereum.
š³ The decline in overall whale activity across most crypto assets has become more and more noticeable. Peak 2024 $100K+ transaction weeks for BTC & ETH compared to recently:Bitcoin:March 13-19: 115.1K Whale TransactionsAugust 21-27: 60.2K Whale TransactionsEthereum:Marchā¦ pic.twitter.com/kBseamXiCT
ā Santiment (@santimentfeed) September 3, 2024
Data from Santiment reveals a stark contrast in whale activity between March and August 2024. During the week of March 13-19, Bitcoin recorded an impressive 115,100 whale transactions, each valued at $100,000 or more. However, by Aug. 21-27, this number had almost halved to 60,200 transactions.
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Ethereum saw an even more dramatic drop. In the same week in March, Ethereum whales also conducted 115,100 transactions. By late August, this figure plummeted to just 31,800 transactions, indicating a larger decrease in whale transactions.
Is it concerning?
A decline in whale activity might initially appear as a bearish signal, suggesting that large investors are stepping back or offloading their assets. However, it is essential to approach this data with nuance. A decline in large transactions does not necessarily equate to whales dumping their holdings or signaling an imminent price drop.
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Historically, whale activity tends to spike during periods of high volatility, whether it is a market rally or a sharp decline. The current decline in large transactions could indicate a period of consolidation, where whales are holding their positions rather than actively trading.
Santiment added that overall, among activity by whales, there remains a steady flow of accumulation despite fewer overall transactions.
August closed in the negative for most crypto assets; Ethereum closed the month down 22.6%. Expectations remain bearish for September, which is typically bearish not just for crypto but across all asset classes.
